Trucks are loaded with sugar cane, which will be used to produce biofuels, in Brazil, but a new report by ActionAid says biofuels are taking away vital land for food production in developing countries, and are sending millions hungry. Photograph: Paulo Whitaker/Reuters

EU companies have taken millions of acres of land out of food production in Africa, central America and Asia to grow biofuels for transport, according to development campaigners. The consequences of European biofuel targets, said the report by ActionAid, could be up to 100 million more hungry people, increased food prices and landlessness.

"To meet the EU 10% target, the total land area directly required to grow industrial biofuels in developing countries could reach 17.5m hectares, over half the size of Italy. Additional land will also be required in developed nations, displacing food and animal feed crops onto land in new areas, often in developing countries," says the report.

The report attributes the massive growth in biofuel production to generous subsidies. It estimates that the EU biofuel industry has already received €4.4bn (£3.82bn) in incentives, subsidies and tax relief and that this could triple to over €13.7bn if the EU meets its 2020 target.

"Biofuels are driving a global human tragedy. Local food prices have already risen massively. As biofuel production gains pace, this can only accelerate," said report author Tim Rice. He added thatbiofuels are not even an answer to climate change: "Most biofuels are worse than the fossil fuels they are supposed to replace." . Large scale biofuel plantations can increase carbon dioxide emissions, either directly by cutting down forests or ploughing up other carbon rich habitats, or indirectly by forcing farmers to move into these areas. Separately, the UK Nuffield Council on Bioethics is currently consulting on the ethics of biofuels – how to ensure a new generation of biofuels don't increase greenhouse gas emissions and take food from the poor to fuel cars.

If all global biofuel government targets are met, says ActionAid, food prices could rise by up to an additional 76% by 2020 with an extra 600 million extra people going hungry - six times as much as European policies alone.